Mr. Krish, an operational creditor, filed an application with the Adjudicating Authority (NCLT, Delhi) to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s Master Mind Limited, and the application w

CS Professional · Insolvency - Law and Practice · PYQS · June 2024
Mr. Krish, an operational creditor, filed an application with the Adjudicating Authority (NCLT, Delhi) to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s Master Mind Limited, and the application was accepted. On 10th July 2023, NCLT Delhi appointed Mr. Aditya to act as an Interim Resolution Professional of M Limited. After the appointment, Mr. Aditya issued the public announcement on 12th July 2023, of the initiation of CIRP process and called for the submission of claims. On 20th July 2023, the Committee of Creditors was constituted by Mr. Aditya. Thereafter, Mr. Krish wants to withdraw his application under Section 12A of the Insolvency and Bankruptcy Code, 2016. However, Mr. Aditya denied filing a withdrawal application stating that the Committee of Creditors has already been constituted. Referring to the provisions of the Insolvency and Bankruptcy Code, 2016, answer the following with reference to the above facts: Would your answer differ in case the Committee of Creditors is not constituted ?

Answer & Explanation:

Regulation 30A of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 provides that application for withdrawal of to the Adjudicating Authority before constitution of CoC shall be made through the interim resolution professional. The interim resolution professional shall submit such withdrawal application to the Adjudicating Authority on behalf of the applicant, within three days of receipt of request. Further, the final approval of such withdrawal shall be by way of an order passed by the Adjudicating Authority. Thus, if Committee of Creditors is not constituted Mr. Krish shall apply to the Adjudicating Authority (NCLT. Delhi) through the Interim Resolution Professional, for withdrawal. Hence, the answer will not differ and Mr. Aditya cannot deny Mr. Krish to file a withdrawal application with NCLT, Delhi.

Topics: Corporate Insolvency Resolution Process (CIRP)

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